North Dakota Oil Output Hits 1.157 Million Barrels in July
State regulator projects August production will exceed July levels as active rig counts remain stable and servicing activity accelerates.
Key points
- North Dakota oil production increased by 1,846 barrels per day to reach 1.157 million barrels in July.
- The active rig count remained stable at 34 in September, with most new rigs reactivated from idle status.
- The state regulator expects August output to rise further as operators accelerate well completions and servicing.
North Dakota crude oil production rose by 1,846 barrels per day to reach 1.157 million barrels in July. The state regulator expects August output to be stronger than the previous month based on current activity levels and pricing conditions.
Justin Kringstad, executive director of the Pipeline Authority, stated that operators are accelerating well completions. This increased pace of work suggests additional wells will come online in the coming months, contributing to higher overall volumes.
Rig counts remain stable after summer surge
The active rig count stood at 34 in September, unchanged from the previous month. Department of Mineral Resources data shows that rig additions leveled off after a late-summer increase, as planned expansions were largely completed.
Most newly deployed rigs were reactivated from idle status within the state or moved in from neighboring Montana. Gunther Harms, a treating plant manager, noted that operators have already deployed their planned equipment for the second half of the year.
Servicing activity drives potential production gains
Regulators observed strong activity among workover rigs across western North Dakota. These mobile units focus on well maintenance and remediation, indicating that existing infrastructure is being optimized to support higher output.
Harms explained that operators are moving quickly on these wells to bring them into production. This efficient servicing approach reduces the time between maintenance and actual oil recovery, enhancing the state's overall productivity.
Budget forecasts remain unchanged despite high output
North Dakota left its production forecast unchanged despite July output exceeding the projected 1.1 million barrels per day. Kringstad noted that forecasting crude prices remains difficult, even as producers expect strong market conditions.
US crude futures for March delivery traded near $82 per barrel, while front-month prices reached $95.78. According to boereport.com, these price signals influence operator decisions, yet the state maintains a conservative approach to its financial planning.
